Underwriters support NAICOM on new vehicle third-party premium
Underwriters have expressed support for the 200 per cent upward review of third-party vehicle insurance premiums by the National Insurance Corporation (NAICOM).
Third-party insurance is one of the compulsory classes of insurance and the most popular among the six policies stipulated by the Insurance Act 2003.
Chairman of the Nigerian Insurers Association (NIA), Olusegun Omosehin, disclosed at a media briefing in Lagos, that the association has concluded plans to ensure that members comply with the new rate.
Recall that on December 22, 2022, NAICOM announced a 200 per cent increase in premium payable on the compulsory insurance, from N5,000 to N15,000 and also increased claims on the policy from N1 million to N3 million.
According to Omosehin, the association is calling for industry players’ engagement as a first-layer interface with the critical stakeholders to ensure they buy-in and support the development for the industry’s growth.
“We do not need to restate the issues with enforcement of the old rates. But we are certain that with the support and understanding of the Nigerian public, we will secure support for the new rate. This will not only lead to an increase in premium income for underwriters but will also increase claim payment to the clients when the need arises,” he said.
He stressed the advantage of the new rate, saying the ECOWAS Risk (risk arising from travelers from West African countries) and others are covered under the new regime.
Speaking on the association’s relationship with other arms, Omosehin said the NIA Governing Council has scaled up engagement with other arms of the industry to discuss issues of mutual concern.
“The Joint NIA/ NCRIB Technical Committee has been meeting on technical issues that affect brokers and underwriters, with hope and expectation that these engagements will further cement the existing cordial relationship between the two bodies,” he said.